Threshold Network Proposal Would Merge tBTC With WBTC, Potentially Handing Control to BitGo

MacLane Wilkison has submitted a proposal to the Threshold Network, which issues tBTC, to merge with WBTC, the ‘Wrapped Bitcoin’ product

MacLane Wilkison has submitted a proposal to the Threshold Network, which issues tBTC, to merge with WBTC, the ‘Wrapped Bitcoin’ product, which has attracted attention thanks to its recent partnership with BiT Global and Justin Sun.

This proposal would involve Threshold Network minting a significant new amount of its token, an amount apparently worth over $36 million (though that would be before the dilution of these new tokens).

Practically, the proposal details how Threshold would become the sole ‘merchant’ on the WBTC network, and the functions of the under-used WBTC DAO would be transferred to the Threshold Network. The management of the bitcoins that back WBTC would then be transferred to tBTC.

A user with the username ‘student’ highlighted that this proposal would end up transferring more tokens to BitGo than generally participates in the Threshold Network DAO votes, potentially handing over control of the Threshold Network to BitGo.

Mike Belshe, the CEO of BitGo, has previously claimed that the WBTC large DAO will decide “how we do custody of this thing,” so presumably this decision will now be sent to it, though BitGo previously failed to provide the governance votes that approved the transition to BiT Global when Protos inquired after them.